But one thing will definitely help with its user acquisition…Ģ. So Douyin has a lot of catching up to do. The latter will take a lot of time, as Alipay and WeChat Pay have become the standard for both online and offline commerce. So Douyin’s upcoming priorities are, first, to get people to sign up for its payments service, and, second, to get vendors on board. Of course, Douyin hasn’t immediately shut out the competition, since both Alipay and WeChat options are still available to its users. See, for example, Kuaishou, which doesn’t (yet) control the entire commerce loop and remains dependent on Alibaba and Tencent. Without the payment element, internet companies remain dependent on the likes of Alipay and WeChat Pay to complete transactions. For any platform-based firm, the payment link is key to the establishment and growth of its internal platform economy. This is very likely to change as Douyin gains market share, but it represents a valuable proposition for users. So every yuan in transaction fees that goes to Alipay or WeChat Pay is a yuan lost to a competitor.Īnd thus, on January 20, Douyin Pay was launched, operating with an initial no-fee policy - unlike Alipay and WeChat Pay, which both have fees for withdrawals and transfers by users and third parties. Internet companies in China mostly operate in a zero-sum environment: you either win or lose. Obviously, the platform bears these costs, not the user. When users objected (fervently), Meituan founder Wang Xing pointed out that his company had to cover processing fees for Alipay and rival Tencent’s WeChat Pay. In July 2020, Meituan temporarily canceled the use of Alipay on its platform. In the Chinese market, if you want to compete as an ecosystem or a platform, you must control all transactions. Here’s what they’ll do to guarantee their ascendancy at home in China over the course of 2021.ġ. But the gloves are coming off for Douyin this year. It’s the Chinese version of TikTok, the innocuous fun factory your baby nephew and mom are addicted to. Who can boast the following triple achievements?Įxclusive partnership to sponsor CCTV’s Spring Festival Gala.
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